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Pacific Assets Tst (81CE)

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Friday 21 September, 2007

Pacific Assets Tst

Interim Results - Replacement

Pacific Assets Trust PLC
21 September 2007

To:             RNS
From:           Pacific Assets Trust plc
Date:           21 September 2007



THIS REPLACES THE ANNOUNCEMENT NUMBER 1399E RELEASED AT 7.01 AM ON 20 SEPTEMBER
2007 AND INCLUDES A STATEMENT OF DIRECTORS' RESPONSIBILITIES WHICH WAS OMITTED
FROM THE ORIGINAL ANNOUNCEMENT.


INTERIM RESULTS FOR THE SIX MONTHS ENDED 31 JULY 2007 (unaudited)


  • Net asset value per share increased by 37.3 per cent
  • Share price increased by 38.5 per cent


Interim Management Report


The Chairman, David Nichol, said:


'I am pleased to report a significant improvement in your Company's fortunes
over the past six months.  Not only has the absolute return been substantial,
but performance relative to the peer group and the MSCI All Country Far East
Free (ex Japan) Index has improved markedly.



During the six months to 31 July 2007, the net asset value per share increased
by 37.3 per cent and the net asset value total return was 38.8 per cent, placing
the Company first in its peer group of eight companies over the period. The
comparable return from the MSCI All Country Far East Free (ex Japan) Index was
23.2 per cent.  The outperformance derived from strong stock selection across a
number of countries as well as an increased use of gearing.



A year ago, I announced in my 2006 interim statement that the Pacific Equities
Team at F&C had been strengthened by the addition of Peter Dalgliesh, who was
subsequently appointed as the Company's lead fund manager.  The results over the
12 months to 31 July 2007 in which your Company was placed first in its peer
group, with a net asset value total return of 64.6%, underline the achievements
of the new management team at F&C.



This six month period was characterised by an extended run of positive market
sentiment in the Asia Pacific markets, between which were sandwiched short term
bouts of nervousness.  Macroeconomic growth data in China, India and Singapore
all exceeded expectations during the period, as did industrial production,
retail sales and employment growth in a number of countries across the region.
From a corporate perspective, company earnings have also been robust.



All markets in which the Company is invested produced positive returns during
the period. The strongest came from China and Korea, the latter of which
returned more than 35 per cent as measured by MSCI indices.  Despite attempts by
the Chinese government to moderate demand, there has been widespread retail
equity market participation in domestic financial assets and valuations in the A
share markets are looking stretched.  The Company gained its direct exposure to
Chinese equities via the Hong Kong H share and Red Chip markets, in which
mainland companies are trading at more acceptable valuations.  In Korea, the
market benefited from the return of domestic investors as well as an improvement
in consumer confidence. The Managers increased the Company's exposure to Korea
during the period.



Gearing



Gearing as at 31 July 2007 was 11.7 per cent compared with 8.3 per cent as at 31
January 2007. The Company's borrowings are represented by two flexible US
denominated facilities which enable it to borrow up to 20 per cent of
shareholders' funds as and when the Managers consider opportunities to be
sufficiently attractive.



Share Buy-Backs



During the period the Company bought back 500,000 Ordinary Shares for
cancellation, equivalent to 0.4 per cent of the shares in issue at the beginning
of the period. The shares were bought back at a discount of 11.7 per cent to the
net asset value per share.



Outlook



Recently, equity markets around the world have been exceptionally volatile as
investors have tried to identify the ultimate owners of repackaged debt. As the
picture becomes clearer we believe there will be some limited Asian exposure,
most likely in the financial sector, and that markets may suffer as investors
become more risk averse. Beyond this, however, we believe Asia's strong economic
growth remains intact and this should be reflected in good equity performance
over the long term.'







PACIFIC ASSETS TRUST PLC
Unaudited Income Statement

                                                              Six months to 31 July 2007

                                                                Revenue     Capital      Total
                                                                  £'000       £'000      £'000

Gains on investments                                                  -      46,120     46,120
Exchange differences                                                  -         696        696
Income                                                            1,809           -      1,809
Investment management fee                                         (169)       (508)      (677)
Other expenses                                                    (256)           -      (256)

Net return before finance                                         1,384      46,308     47,692
costs and taxation

Interest payable                                                  (106)       (318)      (424)

Return on ordinary activities
before tax                                                        1,278      45,990     47,268

Tax on ordinary activities                                        (378)         299       (79)

Return attributable to
equity shareholders                                                 900      46,289     47,189


Return per Ordinary Share                                         0.76p      39.06p     39.82p


PACIFIC ASSETS TRUST PLC
Unaudited Income Statement

                                                              Six months to 31 July 2006

                                                                Revenue     Capital      Total
                                                                  £'000       £'000      £'000

Losses on investments                                                 -     (5,122)    (5,122)
Exchange differences                                                  -        (71)       (71)
Income                                                            1,830           -      1,830
Investment management fee                                         (139)       (419)      (558)
Other expenses                                                    (294)           -      (294)

Net return before finance                                         1,397     (5,612)    (4,215)
costs and taxation

Interest payable                                                   (56)       (169)      (225)

Return on ordinary activities
before tax                                                        1,341     (5,781)    (4,440)

Tax on ordinary activities                                        (411)         330       (81)

Return attributable to
equity shareholders                                                 930     (5,451)    (4,521)


Return per Ordinary Share                                         0.76p     (4.46)p    (3.70)p




PACIFIC ASSETS TRUST PLC
Audited Income Statement

                                                                           Year to 31 January 2007

                                                                           Revenue      Capital        Total
                                                                             £'000        £'000        £'000

Gains on investments                                                             -       13,727       13,727
Exchange differences                                                             -          236          236
Income                                                                       3,193            -        3,193
Investment management fee                                                    (275)        (826)      (1,101)
Other expenses                                                               (565)            -        (565)

Net return before finance                                                    2,353       13,137       15,490
costs and taxation

Interest payable                                                             (135)        (405)        (540)

Return on ordinary activities
before tax                                                                  2,218        12,732       14,950

Tax on ordinary activities                                                  (659)           556        (103)

Return attributable to
equity shareholders                                                         1,559        13,288       14,847



Return per Ordinary Share                                                   1.29p        10.97p       12.26p



PACIFIC ASSETS TRUST PLC
Balance Sheet (unaudited)

                                                                 As at            As at             As at
                                                               31 July          31 July        31 January
                                                                  2007             2006              2007
                                                                                                (audited)
                                                                 £'000            £'000             £'000
Fixed assets
Investments                                                    187,975          110,516           133,126

Current assets
Debtors                                                            333              481             1,271
Cash at bank and on deposit                                        786            6,749               536
                                                                 1,119            7,230             1,807

Creditors: amounts falling due within one year                (20,103)         (10,852)          (11,317)

Net current liabilities                                       (18,984)          (3,622)           (9,510)

Net assets                                                     168,991          106,894           123,616

Capital and reserves
Called-up share capital                                         14,794           15,256            14,856
Share premium account                                                4                4                 4
Capital redemption reserve                                       1,460              998             1,398
Special reserve                                                 16,223           19,356            16,711
Capital reserve - realised                                      70,913           52,829            60,589
Capital reserve - unrealised                                    62,609           15,665            26,644
Revenue reserve                                                  2,988            2,786             3,414

Equity shareholders' funds                                     168,991          106,894           123,616

Net asset value per Ordinary Share                             142.79p           87.58p           104.01p


PACIFIC ASSETS TRUST PLC
Unaudited Reconciliation of Movements in Shareholders' Funds


                                                         Six months to     Six months to        Year ended
                                                               31 July           31 July        31 January
                                                                  2007              2006              2007
                                                                                                 (audited)
                                                                 £'000             £'000             £'000

Opening shareholders' funds                                    123,616           113,049           113,049
Return for the period                                           47,189           (4,521)            14,847
Dividends paid                                                 (1,326)           (1,281)           (1,282)
Share buy backs                                                  (488)             (353)           (2,998)

Closing shareholders' funds                                    168,991           106,894           123,616



PACIFIC ASSETS TRUST PLC
Summarised Unaudited Statement of Cash Flows


                                                       Six months to     Six months to        Year ended
                                                             31 July           31 July        31 January
                                                                2007              2006              2007
                                                                                               (audited)
                                                               £'000             £'000             £'000

Net cash inflow from operating activities                   1,109                  890             1,388
Servicing of finance                                        (411)                (210)             (528)
Capital expenditure and
financial investment
                                                          (8,802)              (6,738)          (10,298)
Equity dividends paid                                     (1,326)              (1,281)           (1,282)


Net cash outflow before financing                         (9,430)              (7,339)          (10,720)
Financing                                                   9,550                1,059           (1,586)

Increase/(decrease) in cash                                   120              (6,280)          (12,306)



Reconciliation of net cash flow to movement in net (debt)/funds

Increase/(decrease) in cash                                  120               (6,280)          (12,306)
Loans drawn down                                        (10,033)               (5,432)           (5,432)
Loans repaid                                                   -                 4,020             4,020

Changes in net debt resulting from cash flows            (9,913)               (7,692)          (13,718)
Currency gains/(losses)                                      696                  (71)               236
Movement in net (debt)/funds                             (9,217)               (7,763)          (13,482)
Net (debt)/funds at 1 February                           (9,682)                 3,800             3,800


Net debt at 31 July/31 January                          (18,899)               (3,963)           (9,682)



Reconciliation of net return before finance costs and taxation to net

cash inflow from operating activities

Net return before finance costs and taxation                47,692               (4,215)            15,490
(Gains)/losses on investments                             (46,120)                 5,122          (13,727)
Exchange differences                                         (696)                    71             (236)
Tax on investment income                                      (79)                  (81)             (103)
Changes in working capital and other non-cash items            312                   (7)              (36)

Net cash inflow from operating activities                    1,109                   890             1,388




Notes:



1.         The unaudited interim results have been prepared on the basis of the
accounting policies set out in the statutory accounts of the Company for the
year ended 31 January 2007.



2.         Earnings for the first six months should not be taken as a guide to
the results for the full year.



3.         There were 118,348,386 Ordinary Shares in issue at 31 July 2007 (31
January 2007 - 118,848,386, 31 July 2006 - 122,048,386).  The weighted average
number of Ordinary Shares in issue during the period, used in calculating the
total return per share, was 118,500,320 (31 January 2007 - 121,118,139, 31 July
2006 - 122,153,469).



4.         During the six months ended 31 July 2006 the Company bought 500,000
Ordinary Shares for cancellation (year ended 31 January 2007 3,610,000 shares,
six months ended 31 July 2006, 410,000 shares).



5.         These accounts have not been reviewed by the Company's auditors
pursuant to the UK Auditing Practices Board guidance on the review of interim
financial information.



6.         These are not statutory accounts in terms of Section 240 of the
Companies Act 1985 and are unaudited.  Statutory accounts for the year to 31
January 2007, which received an unqualified audit report, have been lodged with
the Registrar of Companies.  No statutory accounts in respect of any period
after 31 January 2007 have been reported on by the Company's auditors or
delivered to the Registrar of Companies. The Half Yearly Financial Report will
be posted to shareholders and will be available on the Company's website:
www.pacific-assets.co.uk.





Directors' Responsibility Statement in Respect of the Half-Yearly Financial
Report



We confirm that to the best of our knowledge:



  • the condensed set of financial statements has been prepared in accordance
    with the Statement 'Half-yearly financial reports' issued by the UK
    Accounting Standards Board;



  • the Interim Management Report includes a fair review of the information
    required by:



(a) DTR 4.2.7R of the Disclosure and Transparency Rules, being an indication of
important events that have occurred during the first six months of the financial
year and their impact on the condensed set of financial statements; and a
description of the principal risks and uncertainties for the remaining six
months of the year; and



(b) DTR 4.2.8R of the Disclosure and Transparency Rules, being related party
transactions that have taken place in the first six months of the current
financial year and that have materially affected the financial position or
performance of the company during that period; and any changes in the related
party transactions described in the last Annual Report that could do so.



By Order of the Board,
G R Hay Smith, Secretary




For further information contact:


Peter Dalgliesh           ) F&C Investment Business Limited  0207 628 8000
Gordon Hay Smith          )






                      This information is provided by RNS
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